Several Republican senators expressed reservations about the bill, and the GOP cannot afford too many defections.
Some high earners could keep the full value of their COLAs and see no change to their Medicare premiums.
Elimination of state and local tax deductions will hurt clients in high-tax states the most
DoubleLine Capital executive says he's 'appalled' by the continuation of carried-interest break.
Tax reform legislation expected to have more of a challenge in upper chamber.
Modifications make it easier for some advisers to get a business tax break, repeal the ability to recharacterize Roth accounts, and add uncertainty by making individual cuts temporary and injecting health care into the debate.
Instead of letting clients assume the fallacy of performance outliers, help them with tax-smart asset location.
The solution may be for legislation to preserve the step-up in basis for inherited assets.
Both bills exclude all but small investment advisory firms.
Last-minute changes also include restoration of adoption credit and elimination of limits on interest deductions for car dealers.
Some key differences from House bill include how mortgage deduction and estate taxes are treated.
The House bill seeks to limit the 25% rate to manufacturers, but will still creates opportunities for strategic tax management.
Elimination of alimony deduction could complicate future divorce settlements.
Government website offers tips to protect personal data, but gaps may remain.
Provisions in the tax bill will affect advisers and their clients alike.
While pre-tax 401(k) contribution limits are off the table (for now), the Republican tax bill nonetheless makes changes to retirement savings plans.
Market-driven gains and active-fund outflows mean high distributions.
The proposed measure leaves 401(k) plans alone, but makes sweeping changes in many other areas, including mortgages, property taxes, pass-through income and charitable deductions.
Clients may need to navigate shifting tax brackets, re-characterizations of Roth IRA conversions, reconsidering the value of charitable contributions, and restrictions on the mortgage interest deduction.
Proposed legislation is designed to give manufacturers the lower 25% tax rate, not professional service firms such as financial advisers, lawyers and accountants.
